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Strategies & Market Trends : Value Investing

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To: Seeker of Truth who wrote (15130)8/11/2002 12:51:19 PM
From: Paul Senior  Read Replies (1) of 79047
 
Malcolm Bersohn:

Nice list. My perspective on how to use it is much different though. I have no truck with the the idea that one makes "SOME" money with many methods. I don't draw the conclusion though that the problem then becomes choosing among alternatives on such a list for the "best strategy". It's that word "choose". Which means some strategy must be excluded.

I am inferring - and I might be wrong - that you are suggesting that making "some" money is suboptimizing and that one ought to try to correct for this by choosing among alternative investing strategies. For me, I believe that it is perfectly okay to always make "some" money, and that long-term investment success doesn't require striving to make the "most" money by figuring the "best" way. (I assume long-term investment success is the goal.)

I assume not all methods work well all the time and yet switching from one strategy to another is either equivalent to timing the market or as difficult. Therefore, I have come to the belief that one should invest in ALL the strategies that have shown they work and NOT make either/or decisions.

Of course this itself is a choice. -g-
And as you could point out, I made this choice based on your criteria -- my experience (convincing myself) and my comfort levels (serenity?).

Maybe I'll be on a little more solid ground discussing specific items on your list -g-
About #3: I've never heard of anyone actually using Value Line's No.1 recommendations to consistently make money. Imo, too many stocks coupled with too much upping and downing of the recommendations. Maybe it's better in conjunction with IBD so as to whittle down the number of stocks. Who has been successful with this? (Tom Veale on one of his SI threads had started to track VL's "high growth stocks" which had (un)timeliness of 5. Seemed to be working out okay, until the market began sinking in June.)

Paul Senior
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